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Sam Bankman-Fried, the popular CEO of cryptocurrency exchange FTX and the well-known crypto billionaire behind Alameda Research, has revealed he believes that the cryptocurrency market bottom may have already been reached.<\/p>\n
In a video interview with the CEO and co-founder of Real Vision founder Raoul Pal that first aired earlier this month, Sam Bankman-Fried noted that he doesn\u2019t know \u201cthat we\u2019re waiting for the other shoe to drop right now\u201d as he believes \u201cthe shoes have dropped and we\u2019re in a, \u2018well, let\u2019s see what happens with the world\u2019 type situation.\u201d<\/p>\n
Sam Bankman-Fried noted he doesn\u2019t feel completely confident in that statement, which he pointed out is \u201cobviously not financial advice.\u201d The CEO agreed with Pal that the cryptocurrency market plunge isn\u2019t unique to the sector.<\/p>\n
As Business Insider reports<\/a>, interest rate hikes from central banks throughout the world sent markets spiraling downward, with BTC dropping around 44% after the Federal Reserve imposed the second rate hike of the cycle on May 4. Notably, the Terra ecosystem collapsed<\/a> shortly after, with its native LUNA and UST tokens becoming nearly worthless shortly after.<\/p>\n During the interview, FTX\u2019s CEO said:<\/p>\n I think the way I would phrase it is, I don\u2019t see any particular reasons that we couldn\u2019t be at the bottom and I\u2019m not trying to say that we definitely are at the bottom, but like I think the unwinding that had to happen has happened.<\/p>\n<\/blockquote>\n The 30-year-old billionaire has moved to try and halt some cryptocurrency lending platforms from going into bankruptcy,\u00a0 offering crypto lender BlockFi a $400 million lone of credit and Voyager Digital a $500 million lifeline.<\/p>\n –><\/p>\n –><\/p>\n The CEO told Raoul Pal that he is deploying capital in projects that would have been fine if it weren\u2019t for the short-term liquidity crunch caused by Terra\u2019s collapse. Per his words, he was saving firms where capital would stop their system from unwinding, avoiding throwing money into a pit.<\/p>\n Per Sam Bankman-Fried, Luna\u2019s collapse wasn\u2019t a surprise, and issues affecting centralized finance platforms revolve around the lack of transparency, as by the time people realized Celsius was in trouble, it was too late and withdrawals were shortly halted.<\/p>\n Such lack of transparency, he said, allows organizations to either use the same collateral in various different loans, or to give out more assets than they have in a process known as rehypothecation. Leverage can, as a result, be far superior to what would be expected.<\/p>\n Addressing the future of the cryptocurrency market, the CEO pointed to payments as a potential catalyst for growing adoption:<\/p>\n I think payments, actually getting them down really well, both domestically and internationally, I think it\u2019s a huge opportunity area.<\/p>\n<\/blockquote>\n Bankman-Fried added that a number of factors will play into the growing adoption of the cryptocurrency space, including having user-friendly interfaces, regulatory clarity that will open the doors for institutional capital, and real use cases being addressed.<\/p>\n Featured image via\u00a0<\/em>Unsplash<\/em><\/a><\/p>\n<\/p><\/div>\n\n
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